What is Interim Occupancy?

As the excitement and anticipation build up when your new home is getting close to completion, there are one of the two things that can happen 

1. Interim occupancy or
2. Final closing without interim occupancy

This blog discusses the first scenario. 

Here are the 3 points to remember about interim occupancy or interim closing of your unit.

1. Building Not Finished

Even though your unit is ready to be occupied, the building might not be entirely complete. There may be other units that are not ready, some of the shared areas are still under construction and so on. This is your Interim Occupancy and it is the phase where you can live in your unit while other areas are being finished and the building is registered with the municipal government.

At this stage, your unit is fit for living, but the building isn't yet registered with the city as a Condominium Corporation.. The City issues an Occupancy Permit to confirm that your unit is safe to live in, but there's still work to be done elsewhere. In other words, the developer gives you the keys once your unit is ready, but they still own it. This period can last from a few weeks to a few months, depending on how quickly the rest of the building is completed and registered. Interim occupancy is not a given meaning that many times the builder will give you the possession of your unit once it is transferred on final closing. So no interim occupancy period in this case. There are scenarios where this happens such as your condo is on a higher floor or if it is a townhouse it gets completed closer to the registration date and there is not much gap between interim and final closing.

2. Occupancy Fees

This is the tricky part during interim occupancy: you have to pay interim occupancy fees, which is sometimes known as "phantom rent" or "phantom mortgage." What are these fees? Well, basically they're "rent" paid to the developer and it covers three main components: 

First, Maintenance/Condo Fees which are what you pay as a share towards the costs of maintaining the building. During interim occupancy, this is based on the developer's proposed budget.

Second, Estimated Property Taxes: The taxes aren't officially assessed yet, so the developer collects an estimated amount, often around 1 to 1.5 percent of the purchase price.

And third, Interest on the Unpaid Balance: If you've put down a deposit, you still owe the remaining balance of the purchase price. The developer can charge interest on this amount, based on the Bank of Canada 1-year conventional mortgage rate. 

These fees can add up regardless of whether you occupy the unit or not, so it's important to budget for them. 

Interim occupancy is just the beginning. The end goal is the final closing, which brings us to our third point. 

3. Final Closing 

This happens when the building is registered with the city. The title in the property is transferred to you at a date that the builder communicates with you. At this final stage, you'll pay the remaining balance of the purchase price, through a mortgage or otherwise. You'll also pay the usual closing costs like development charges, utility connection fees, park levies, land transfer taxes, legal fees, and other costs. 

Once everything is in place, the condo is yours! 

Additional Considerations

What if you want to rent out your unit or do an assignment sale during interim occupancy? Since you don't own the unit yet, you can't just do whatever you want. To rent it out, you'll need permission from the developer. 

If you want to assign it for any reason, you'll have to do an assignment and transfer your contract to another buyer. Make sure you get all necessary approvals to avoid complications. Watch one of my videos on assignments here to get a better understanding. You'll find the link here. Also, keep in mind that if you plan to rent out the unit, it could impact your HST rebate on final closing, since you'd now be considered an investor, not a resident. Consult with a lawyer or financial advisor on this. Interim occupancy can be a bit of a rollercoaster, but there are ways to manage it. 

Here are a few tips: You can Increase Your Deposit: By paying a more deposit to the builder before taking possession, you can reduce the unpaid balance. This will lower the interest portion of your interim occupancy fees. Of course, paying the entire balance amount will save you interest payment to the builder completely but then that's a rare case. 

Generally, units on higher floors have shorter or no interim occupancy period, which means lower fees. And if the developer allows renting during occupancy period then consider renting your unit can offset some or all of the fees. You will need to consider the potential complications if you are planning to move-in after final closing. Most likely you won't find someone to rent just for a couple of months. 

Should you need to discuss purchasing of your pre-construction home in the Greater Toronto Area, give me a shout! You can reach me at 647-834-9928 or send an email to [email protected]

Thank you!

Mississauga Real Estate Market Insights for 2025

The Mississauga real estate market in 2025 is poised to experience moderate growth, shaped by evolving economic conditions, increased housing supply, and shifting buyer preferences. Drawing from the Toronto Regional Real Estate Board's (TRREB) latest data and forecasts, this analysis highlights key trends, challenges, and opportunities for the year.

Market Overview

Mississauga, as part of the Greater Toronto Area (GTA), is expected to see a total of 76,000 home sales across the region in 2025—an increase of 12.4% compared to 2024. The average selling price for all home types combined is forecasted to reach $1,147,000, marking a modest 2.6% rise over last year. Price growth will be more pronounced in single-family market segments, including detached and semi-detached homes, while the well-supplied condo market will see slower appreciation.

In February 2025, Mississauga’s average home price hovered around the low-to-mid $1 million range, slightly below Toronto’s average. Sales activity across the GTA declined by 27.4% year-over-year in February due to affordability concerns and economic uncertainty. However, new listings rose by 5.4%, providing buyers with more options.

Buyer Trends

1. First-Time Buyers: Lowering borrowing costs in 2025 will encourage first-time buyers to enter the market. The latest quarter percent rate cut by the Bank of Canada to 2.75% will nudge the sidelined first-time buyers into the market. Affordable options like condos and townhomes remain popular.

2. Move-Up Buyer: Families seeking larger homes are focusing on detached and semi-detached properties as prices stabilize.

3. Investors: With rental demand high due to immigration-driven population growth, investors are targeting purpose-built rentals and multi-unit properties.

Economic Influences

- Interest Rates: The Bank of Canada is anticipated to cut interest rates further in 2025, improving affordability and prompting more buyers to act.

- Trade Uncertainty: Potential U.S. tariffs on Canadian exports could dampen consumer confidence and reduce purchasing power.

- Affordability Challenges: High development charges and taxes continue to impact housing costs despite efforts to increase supply.

- Lowering of Development Charges: City of Mississauga has recently reduced the development fees it charges the builders by a whopping 50% in order to get more homes built to meet the ever-increasing demand.

Housing Supply

Mississauga benefits from a growing inventory in 2025, with active listings significantly higher than in previous years. TRREB emphasizes the importance of increasing "missing middle" housing—townhomes, duplexes, and low-rise multi-unit buildings—to address supply gaps. Purpose-built rentals are also critical for meeting demand.

Property Segment Insights

- Detached Homes: Prices for detached homes are expected to grow moderately as demand stabilizes. These remain a preferred choice for move-up buyers but face affordability challenges.

- Townhomes: Townhomes continue to attract first-time buyers due to their relative affordability compared to detached homes.

- Condos: The condo market is well-supplied, leading to slower price growth compared to other segments. However, condos remain an accessible entry point for many buyers.

Challenges

1. Affordability Concerns: Despite lower interest rates, high home prices continue to challenge first-time buyers.

2. Economic Uncertainty: Trade disruptions and inflationary pressures may limit consumer confidence and spending power.

3. Infrastructure Delays: Traffic congestion and delays in transit projects could impact property values near key hubs.

 Opportunities

1. Lower Borrowing Costs: As interest rates decline further in 2025, affordability will improve, drawing more buyers into the market.

2. Transit-Oriented Development: Properties near transit hubs like those along the Hurontario LRT corridor will benefit from increased connectivity.

3. Increased Supply: Rising inventory levels provide buyers with more choices and negotiating power.

 Conclusion

Mississauga’s real estate market in 2025 reflects a balanced environment with moderate price growth and increasing sales activity expected later in the year as borrowing costs decline. While challenges such as affordability and economic uncertainty persist, opportunities abound for buyers and investors willing to navigate this dynamic market.

With its strategic location within the GTA and ongoing infrastructure improvements, Mississauga remains an attractive option for families, first-time buyers, and investors alike. The city’s focus on housing diversity and transit-oriented development positions it well for sustained growth in the years ahead.

Have Questions?

It is natural to have concerns in the type of market that we find ourselves in. Give me a call and I will help you find a solution for your particular situation. Call or text me: 647-834-9928.

Past decade has seen a boom in pre-construction builder homes market in the Greater Toronto Area. Many real estate investors and first-time buyers alike have profited and for some it has not been so profitable. Why is that? 

Here is my take on it but, of course, there are other opinions that are equally valid.

When buying any Greater Toronto Area pre-construction home, whether a condo unit or a townhouse, as an investor, the most important question is whether the investment will be profitable. Think of it in two key ways: a) generating immediate cash flow and b) appreciating in the long term. Pre build homes often promise future value, but the true return on investment (ROI) from real estate requires a deep understanding of both the rental potential and the property’s capacity for appreciation.

So how do you evaluate if your rental property will be beneficial in the long term? Here are a few factors.

1.    Cash Flow

A positive cash flow is the money left over after mortgage payments and other expenses are paid. It’s a critical element in determining whether a pre-construction condo can generate immediate income. To project this accurately, it’s essential to consider several costs. 

Rent is, of course, the primary consideration, but you also have to account for expenses like mortgage payments, property taxes, insurance and condo fees at the minimum. For example, if you’re charging $2,500 per month in rent but paying $1,500 for the mortgage, $300 in condo fees, another $300 for property tax (taken monthly) and $20 for insurance your net monthly cash flow would be $380. 

In the recent high mortgage rate environment, it is likely that an investor finds himself or herself with barely enough after all costs. In some situation, as with high value purchases, rent received may not even cover all the outgoings. You, as an investor, need to be prepared to shell out some money of your own monthly to cover the expenses if you wish to go ahead. 

2.    Appreciation in Value

Historically, GTA real estate values have risen over time, but this is not guaranteed. To assess the potential for appreciation, you’ll need to look at historical trends in the Toronto housing market. For example, if a neighbourhood has seen a steady 5% annual growth in property values over the last decade, there’s a good chance this trend may continue. To illustrate this point, consider this fact: in the 10-year period from 2013 to 2023 the prices increased roughly 12% on an average every year.

When buying a builder home, consider the risk of market downturns. If the market dips, you’ll need to determine whether you’re in a position to carry the property through negative cash flow months. For instance, if rental income drops or the property sits vacant, would you have enough reserves to cover the mortgage and other expenses without severely impacting your financial health? As you probably already know, we are currently going through this situation in the Toronto housing market.

To this point, your term goal is important to consider. If your holding is for a shorter term, say 2-3 years, then any short-term market trend will influence your investment outcome. But if you plan to keep your property for a longer term, say over 5 years, then usually any short-term fluctuations even out. This means that there is good chance that your investment will have appreciated considerably over time. From my experience, in the Greater Toronto Area, the rule of thumb is 5 years: holding a residential property for 5 years gives it a good chance to even out any down market and increase in value.

Now, you will also have to evaluate a property’s potential from these factors below. They will have a strong bearing on your decision to go ahead with the purchase.

1. Developer Reputation

One of the first aspects to evaluate is the developer’s track record. Look into the history of their projects, their completion timelines, and the quality of their work. Financial stability is also crucial. A developer with a strong financial foundation is less likely to experience delays or, worse, project cancellations.

2. Location

Location is one of the key considerations in real estate. You’ll want to evaluate the neighborhood, paying close attention to its proximity to essential amenities such as schools, parks, and transportation hubs. A desirable neighborhood boosts rental demand and ensures a steady stream of tenants. Additionally, research the area’s historical and projected appreciation potential to get a clearer picture of how much the property might be worth in the future.

3. Project Details

The appeal of individual units matters too. Examine floor plans, the layout of the unit, and features like natural light exposure, as these factors can influence rental prices. Check the amenities on offer, such as gyms, pools, and concierge services, which can make a property more attractive to renters. Also, inquire about the construction quality, including materials used and building standards.

4. Pricing and Payment Terms

Compare the pre-construction condo prices to similar properties in the area to ensure it aligns with market rates. Understand the payment schedule and deposit structure, being mindful of potential penalties for late payments. Also, factor in closing costs like property taxes, legal fees, and moving expenses to get a complete picture of the total investment. Don’t forget to consider the HST on new homes, as this can be a significant cost. However, in certain cases, you may be eligible for an HST rebate, which can help reduce your expenses.

5. Contract Terms

Ensure the property is covered by the Tarion Home Warranty, which protects new home buyers. Be sure to review the contract carefully for any cancellation provisions or penalties. Escalation clauses can also impact your investment if construction costs rise, so understanding these is key to managing your financial exposure.

6. Market Trends

Real estate markets fluctuate, so it’s important to conduct a market analysis of the local area. Research trends such as the balance of supply and demand for pre-construction properties and examine broader economic factors like interest rates, employment levels, and the general economic climate, as these will influence both rental income potential and property appreciation in the Toronto housing market.

Consult Professionals: A knowledgeable real estate agent can provide invaluable advice throughout the process and help you navigate potential pitfalls. You may even land a good bargain with the help of a realtor with pre-construction expertise. Similarly, a real estate lawyer can review the contract to ensure your interests are protected. I would also consult with a mortgage professional at this point to make sure I don’t get any surprises when time comes for closing. 

How to Calculate ROI

Investors typically rely on two main methods: the cost method and the out-of-pocket method. The cost method is straightforward. It calculates ROI by dividing the investment gain by the total costs. Let’s say you buy a pre-construction condo for $100,000 and invest another $60,000 in improvements. If the property appreciates to $200,000, your gain is $40,000 (i.e., $200,000 minus $160,000). To calculate your ROI, you divide the gain by the total costs: $40,000 ÷ $160,000 = 0.25, or 25%. While this is a solid return, many investors prefer to leverage financing to maximize their ROI.

This brings us to the out-of-pocket method, which is often preferred because it can result in a higher ROI. Imagine the same scenario, but instead of paying all cash, you finance the property with a loan. You put down $20,000 and invest the same $60,000 in improvements. With the property now valued at $200,000, your equity is $100,000 (the value minus the loan). Your out-of-pocket expense was $80,000, so your ROI would be $100,000 ÷ $80,000 = 1.25, or 125%. In this case, leveraging debt has significantly increased your return.

ROI Comparison: Cost vs. Out-of-Pocket Method

But how do you decide what a good ROI is? A good ROI varies depending on your risk tolerance. Some investors may be satisfied with a 10% ROI, comparable to stock market returns, while others aim for higher numbers to compensate for the risks involved. Generally, many real estate investors aim for a return that matches or exceeds the long-term average return of around 10% on the S&P 500. However, it’s also important to note that pre-construction condos come with their own set of risks, such as potential delays in construction or market changes before completion.

Investors must also account for costs that could reduce their ROI. For example, selling a property involves realtor commissions, legal fees, repairs, and staging costs. If you estimated your ROI based on market value but sell for less or face hefty selling costs, your realized return could be much lower. In addition, real estate is subject to capital gains taxes, which will eat into your profits when you sell. If you hold the property for more than a year, you’ll pay long-term capital gains taxes, which are lower than ordinary income tax rates. However, if you sell within a year, your gains will be taxed as regular income, which can significantly reduce your profits.

Finally, always stress-test your investment by considering worst-case scenarios. For example, if market conditions worsen or interest rates rise sharply, would you still be able to carry the property? Investors often use stress-testing scenarios to evaluate their capacity to handle negative cash flow periods or declines in property values. A savvy investor always has a backup plan to protect their investment in challenging times. Remember, failing to plan is planning to fail!

Purchasing a pre-con home can be an exciting opportunity, whether you’re looking to live there or looking to invest, but it’s important to be aware of the complexities involved. By considering all the factors we’ve discussed and by seeking expert guidance from a real estate lawyer and agent, you’ll be in a strong position to make a smart, informed decision. 

If you are looking purchase your new build condo in the GTA and need access to quality builder projects then call me at 647-834-9928 or email at [email protected]

Owning a home in the GTA is said to be an absurd pipe dream. Well, it does seem to be so given the dizzy levels the home prices in the Greater Toronto Area have reached. Even with the recent downturn this year in 2024 many of my prospective clients find it difficult to afford a house or condo apartment. 

Rapid increase in mortgage interest rate in the last 2 years certainly put a damper on any hopes people had owning their first home or even upgrading.

But it is not entirely impossible to own a home. Let us try to look at this situation from both sides.

Income Requirements

Recent analyses highlight a significant financial gap between average earnings and the income needed to afford a home. For instance, purchasing a single-family detached home in the Greater Toronto Area now requires a household income of approximately $269,000. In Toronto, a potential homebuyer needs around $209,000 in annual income to buy a median-priced home at $1,050,300. Despite easing of mortgage rates, both fixed and variable, the income needed remains dauntingly high due to lingering high property values and stringent mortgage approval conditions, including the higher benchmark rates of the mortgage stress test.

So, what does this mean for the average Canadian? Essentially, the financial bar for homeownership has been set very high. Many are finding it incredibly difficult to save enough for a down payment, let alone manage the monthly mortgage payments.

While it’s true that housing prices have decreased in some areas, the overall picture remains bleak. Across Canada, home prices are still significantly higher than pre-pandemic levels. The market may be cooling slightly, but not enough to make homes accessible to the average Canadian. High mortgage rates has created formidable barriers.

Once a feasible milestone for the middle class, buying a home is now a goal seemingly reserved for the wealthier segments of society. The stringent mortgage stress test, combined with elevated property prices, has created an environment where only the financially well-off can consider purchasing in major urban centers. This shift is not just affecting cities but is also pushing potential buyers towards smaller towns, impacting housing markets across the country.

Changes in Policies

Changes in policies and political influences also play a significant role. For instance, the Bank of Canada's recent rate cuts offers some relief, but buyers may still be waiting for additional cuts before feeling confident to enter the market. This slight reduction in interest rates is a step in the right direction, but it may not be sufficient to significantly ease the financial burden on potential homebuyers just yet.

In British Columbia, the anticipation of new measures to curb housing prices has influenced market dynamics, with many choosing to sell their properties before potential price drops. While these policies aim to make housing more affordable, their effectiveness remains to be seen.

The federal government's efforts to limit population growth include a new cap on international students and a targeted reduction in temporary residents to 5% of the population over the next three years. While this policy may not significantly impact population growth in 2024, it's expected to slow growth in 2025 and 2026. Coupled with an increase in condo completions over the next two years, this could alleviate some pressure on the rental market. However, it may also create additional challenges for condo investment demand. 

Currently, these factors are unlikely to drive developers to lower prices enough to attract investors back into the market. Elevated interest rates and rising municipal development charges mean new condo prices will likely remain high.

If you’re looking to buy a home though, the current environment demands careful consideration. While it may seem counterintuitive, in some cases, buying now could offer advantages, like building equity sooner or leveraging favorable market conditions in specific regions. However, this decision is highly personal and depends on factors like financial stability, credit status, and long-term plans.

Low Inventory and Bidding Wars

Though sales are down, there are still fewer affordable homes on the market compared to historical averages, making competition fierce for desirable properties. This low inventory situation means that even with reduced buyer activity, the market remains highly competitive.

With limited inventory, bidding wars can still erupt, especially for move-in ready homes, pushing prices beyond asking. These bidding wars not only drive up the cost of purchasing a home but also create a highly stressful environment for buyers, who may feel pressured to make quick decisions or stretch their budgets further than planned.

Market Analysis and Predictions

Experts predict continued stagnation in sales in 2024, unless mortgage rates drop significantly or sellers start accepting lower bids. High prices and interest rates are keeping many buyers out of the market. Some analysts forecast a rise in home prices due to sustained demand and limited supply, particularly in urban areas where inventory remains low. Conversely, other experts anticipate a slight decline or stabilization of prices as the market adjusts to current economic conditions.

As of June 2024, new condo prices have decreased by only 5% from their peak, whereas resale condo prices have dropped by 12% and could decline further due to the recent increase in listings. Developer incentives and a 30% rise in rent from COVID lows provide some support for investors, but it's insufficient. In essence, investing in new condos is not feasible at the current market average price of nearly $1,400 per square foot.

The housing market in Canada is complex and influenced by various factors such as economic policies, interest rates, and global economic trends. Staying informed and seeking professional advice can be crucial steps in navigating this challenging market. Whether you’re looking to buy now or waiting for potentially more favorable conditions, understanding the forces at play can help you make informed decisions.

As always, I’m here to help you make these decisions by ensuring that you have the right information. My goal is to guide you through the process, providing insights tailored to your specific situation, so you can make the best choice for you and your family. 

If you have any questions, call me at 647-834-9928 or email to [email protected]

We’ve heard that the real estate market has been slow a multiple times since the beginning of this year. What does that mean for pre-construction? That sector of the market has seen a real slow down throughout 2023 and this year, 2024. Presales are down, the buyers on the sidelines and the developers are simply pushing off the launches for better times.

Interest Rates

First up, let's talk about interest rates. Since March 2022, the Bank of Canada has been steadily increasing interest rates to combat inflation. This move aimed to bring inflation down to a target of 2%, and initially, it seemed to be working. Inflation dropped from a peak of 8.1% in June 2022. However, in April 2023, the Consumer Price Index, or CPI, rose by 4.4%, the first uptick since the peak. This led to further rate hikes, with the policy interest rate reaching 4.75% in June 2023 and then 5% in July, where it had stayed until this spring. Since then we have had two quarter-percent cuts as of this writing.

These high interest rates make borrowing money for mortgages more expensive. For many potential buyers, especially those looking at new constructions that often require larger mortgages, this is a major deterrent. When borrowing costs are high, fewer people are willing or able to commit to a new home. Even the two rate cuts haven't moved the needle much.

Source: Bank of Canada https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/

Developer Caution

Developers look at the market trends and they currently see a sluggish market. Many developers in the Greater Toronto Area are hesitant to launch new pre-construction projects. Why? Well, developers usually need to secure a certain number of pre-sales before they can get financing to start construction. Think of it as a kind of safety net. If they can't sell enough units upfront, they can't get the loans they need to build. It's a risky situation.

Imagine you're a developer. You’ve got the land, you’ve got the plans, but you need those pre-sales to kickstart everything. With fewer buyers willing to commit because of high interest rates and economic uncertainties, reaching that pre-sale target becomes challenging. This creates a catch-22: without pre-sales, no financing; without financing, no construction; and without new projects, the market remains slow.

Economic Uncertainty

Speaking of the broader economic uncertainty: when people sense that the economy might be headed for a downturn, they naturally become more cautious about making big financial decisions, like buying a new home. Today’s economic uncertainty is driven by various factors including geopolitical events, changes in government policies, and global economic trends.

This uncertainty has made potential buyers wary. They're concerned about job security, future income stability, and overall financial health. In such times, the idea of taking on a significant financial commitment like a new home, especially one that won't be ready for a few years, can seem too risky. This cautious approach contributes to the slowdown in the pre-construction market.

Increased Inventory of Unsold Units

Adding to the mix is the issue of increased inventory. With fewer sales, there are more unsold pre-construction units on the market. This increased inventory can create a perception problem. Potential buyers might see the glut of unsold units and think, ‘if so many homes are unsold, maybe there's something wrong with the market or these properties specifically.’

Buyers might also worry about future property values. If there are a lot of unsold units now, they might fear that prices could drop further, leading them to hold off on making a purchase. This hesitation can create a cycle where increased inventory leads to more buyer hesitation, which in turn leads to even higher inventory levels.

Developers, seeing their units unsold, might also slow down on new projects to avoid adding to the inventory glut. This slowdown in new project launches further contributes to the overall sluggishness in the pre-construction market.

Market Dynamics

The Canadian housing market, particularly in the GTA, is experiencing its most significant challenge since the 1991 recession. The GTA's housing market is divided into two distinct segments. The low-rise market is relatively stable, with limited inventories and improved sentiment due to recent mortgage rate trends. In contrast, the condo market is in a recession, facing conditions not seen in decades. Investors, who account for up to 70% of presale buyers, add to the complexity of the situation.

From a macro perspective, the significant slowdown in condo activity has substantial implications. Typically, each construction crane symbolizes around 500 jobs. Since 2022, the number of condo projects under construction in the GTA has dropped by at least 75, affecting nearly 40,000 jobs. Official statistics show that as of June this year, construction employment in Ontario decreased by at least 7.5% year-over-year. Except for the COVID-19 recession, this is the weakest performance since the 2008 recession.

The ripple effects of this slowdown are profound. As construction projects stall, job losses increase, affecting not only the housing market but also the broader economy. This creates a feedback loop, where economic uncertainty further depresses housing demand, leading to even more pronounced market stagnation.

So, what's the takeaway here? The pre-construction market might be slow right now, but it's important to remember that markets are cyclical. These trends we're seeing today won't last forever. Interest rates, developer confidence, economic conditions: they all fluctuate. Staying informed and being prepared to act when the market shifts can position you well for the future.

If you're considering a pre-construction purchase, now might be a good time to start doing your research, so you're ready to move when the market picks up. And as always, I'm here to help you navigate these changes and find the perfect property that fits your needs.

Call 647-834-9928 or email [email protected]

Cheers!

It's all about knowing where to start

Even after some downturn in Greater Toronto Area pre-sale condo market in 2023-2024, we are still seeing interests in good, quality condos by reputable builders. And buying a pre-construction condo is a different from purchasing an existing one, and you need to know the right steps to make your investment a success. So here are the 10 steps:

Step 1: Researching the Builder’s Track Record

Start with researching the builders and their projects. Know who you're buying from. Ask questions like: How long has the builder been in business? Have they completed all past projects on time? What kind of materials are they using? A reliable builder is key to ensuring your investment is safe.

Step 2: Hire a Knowledgeable Agent

Ask your agent if he or she has access to the initial launch. In a new build market such as Toronto, getting pre-sale access gives you a huge advantage. You get the lowest prices and the best units with this first launch since the project is not open to general public yet. 

In 2024, the Toronto area builders have started giving price discounts or cash-backs on the closing as an incentive to buy their units. Sometimes even free parking. These price reductions are substantial. When you have an agent who gets this information directly from the builder it is a big plus in making buying decisions. 

I have covered information about how hiring a Platinum VIP agent can give you a big advantage over other buyers. Click or tap this link.

Step 3: Review the Complete Package

To make a smart condo purchase, carefully review the launch package, which includes brochures, floor plans, pricing, and any incentives like discounted parking or capped fees. 

Step 4: Check Out the Building Amenities

When evaluating building amenities, consider how they fit into your daily routine and overall lifestyle. For fitness enthusiasts, an on-site gym or yoga studio can save time and money on external memberships. Families with children will appreciate safe, designated play areas, while social butterflies might seek out party rooms or communal spaces for gatherings. Outdoor enthusiasts may prioritize buildings with rooftop terraces or nearby parks for relaxation. Ultimately, choose a condo that provides the amenities you will actually use and enjoy.

Step 5: Sign the Agreement to Purchase and Sale

Now comes the serious part. Step five is signing the agreement to purchase and sale. This document will detail everything about the purchase: deposit payments, intervals, unit description, parking and locker units, occupancy date and assignment provisions. Be sure to read through this agreement carefully and understand all the terms.

Step 6: The 10-Day Cooling Off Period

Once you've signed the agreement, step six is the 10-day cooling off period. This is your chance to review the agreement with your lawyer. If you find anything you're not comfortable with, or if you change your mind, you can cancel the deal without any penalties. But after these 10 days, the deal is final, so use this time wisely.

Step 7: Choose Your Interior Design

You will get a chance to shape the aesthetic of your new condo much before your occupancy or closing. You can choose from a variety of paint colours, flooring materials, cabinetry, countertops, and fixtures offered by the builder. This is your opportunity to create a space that reflects your personal style and preferences.

However, as exciting as it is to select the colors and finishes, there are some essential upgrades to consider that can only be done during construction, such as, bedroom ceiling outlets and patio BBQ gas line. These upgrades can add significant value to your condo, both in terms of functionality and resale potential.

Step 8: Pre-Delivery Inspection

This is a crucial step before getting your keys. It allows you to inspect your unit with a builder's representative. This walkthrough is your opportunity to identify any flaws or defects, such as scratched surfaces, faulty fixtures, or misaligned cabinetry. Pay close attention to details like paint finishes, appliance functionality, and the condition of windows and doors. Document any issues with photos and notes, and ensure the builder commits to resolving them before you take possession. This inspection ensures that you're moving into a unit that meets the quality standards you expect.

Note: New build homes in Ontario have a 7-year structural warranty from Tarion Corporation and 1-year builder's warranty.

Step 9: Interim Occupancy

Depending upon your situation, the builder may give you possession of your unit pending registration with the City. This is not final closing. You can move in, but you don't technically own the condo yet. During this period, you'll be paying occupancy fees to the builder up to your final closing. 

Step 10: Closing the Purchase

Once the building is registered with the City, the builder send out notice of final closing date. When you complete the paperwork for the closing and the balance of the purchase price is remitted to the builder, the transaction is registered with the land registry office. This means that your unit is now transferred to you from the builder.

If you have questions and want to discuss with me then please call or text me at 647-834-9928 or email me at [email protected].